News

Governor’s administration looks to use federal funds to cover shortfall from tax-exempt PPP loans

Governor’s administration looks to use federal funds to cover shortfall from tax-exempt PPP loans

Photo: 560 WGAN Newsradio


Maine Governor Janet Mills says her administration is looking into whether there are any existing federal funds to help cover costs associated with the Paycheck Protection Program.

Mills has lauded the federal program, which offered loans to businesses impacted by the pandemic that would not be subject to federal taxes and allowed related expenses as deductions. But the governor’s administration says matching the federal tax treatment would result in a loss of state tax revenue of about $100 million, putting a hole in the state’s spending plan.

Mills on Wednesday announced that they’ll be looking for federal funding to avoid imposing a state tax on PPP loans while keeping the budget balanced, which is required under state law. That forced the administration to submit a budget which included revenue from a state tax on the loans.

Mills faced some backlash immediately following the announcement. The Maine Policy Institute issued a statement praising the plan for tax conformity, but said the administration should look to cut spending before looking for federal money.

Former Governor Paul LePage issued a scathing response on social media, accusing the governor of putting a “$100 million hit on Maine’s small businesses and job creators.”

Latest Headlines

13 hours ago in Local

Motorcyclist Dead, Passenger Critically Injured in Sebago Crash

Deputies say speed appears to be a factor in this crash.

18 hours ago in Local

16-Year-Old Rescued from ATV Crash in Penobscot County

Deputies say the ATV had rolled over while swerving to avoid a deer.

19 hours ago in Local

DOT Worker Hit by SUV, Injured on I-295 in Gardiner

A DOT truck displaying activated amber warning lights was in the breakdown lane.

21 hours ago in Lifestyle, Trending

When a rip current sucks you out to sea, try not to panic

To someone who is getting sucked out to sea by a rip current, "Don't panic!" may be difficult to heed, even if that's exactly what you should do. But lifeguards say to not only relax but flip over and float out of the danger.

21 hours ago in Local

Federal judge orders release of Lewiston asylum seeker from ICE facility

A federal judge has ordered the release of a Lewiston man from ICE custody.